Vast Spy System Loots Computers in 103 Countries

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Vast Spy System Loots Computers in 103 Countries

Postby jingofever » Sat Mar 28, 2009 8:27 pm

Link.

In a report to be issued this weekend, the researchers said that the system was being controlled from computers based almost exclusively in China, but that they could not say conclusively that the Chinese government was involved.

The researchers, who are based at the Munk Center for International Studies at the University of Toronto, had been asked by the office of the Dalai Lama, the exiled Tibetan leader whom China regularly denounces, to examine its computers for signs of malicious software, or malware.

Their sleuthing opened a window into a broader operation that, in less than two years, has infiltrated at least 1,295 computers in 103 countries, including many belonging to embassies, foreign ministries and other government offices, as well as the Dalai Lama’s Tibetan exile centers in India, Brussels, London and New York...


...The malware is remarkable both for its sweep — in computer jargon, it has not been merely “phishing” for random consumers’ information, but “whaling” for particular important targets — and for its Big Brother-style capacities. It can, for example, turn on the camera and audio-recording functions of an infected computer, enabling monitors to see and hear what goes on in a room. The investigators say they do not know if this facet has been employed...


The electronic spy game has had at least some real-world impact, they said. For example, they said, after an e-mail invitation was sent by the Dalai Lama’s office to a foreign diplomat, the Chinese government made a call to the diplomat discouraging a visit. And a woman working for a group making Internet contacts between Tibetan exiles and Chinese citizens was stopped by Chinese intelligence officers on her way back to Tibet, shown transcripts of her online conversations and warned to stop her political activities.


That suggests the Chinese government has some knowledge of this 'GhostNet'. In fact, they admit to it:

A spokesman for the Chinese Consulate in New York dismissed the idea that China was involved. “These are old stories and they are nonsense,” the spokesman, Wenqi Gao, said. “The Chinese government is opposed to and strictly forbids any cybercrime.”


Now why doesn't China just cut some deals with telecom companies rather than mucking around with a botnet?
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Postby Penguin » Sun Mar 29, 2009 5:45 am

Are you serious? Theyre just in the game...Botnet is just as good as co-operation of antivirus vendors and operating system peddlers.

http://en.wikipedia.org/wiki/Magic_Lantern_(software)

Magic Lantern is keystroke logging software developed by the United States' Federal Bureau of Investigation. Magic Lantern was first reported in a column by Bob Sullivan of MSNBC on 20 November 2001[1] and by Ted Bridis of the Associated Press.[2]

How it works
Magic Lantern can reportedly be installed remotely, via an e-mail attachment or by exploiting common operating system vulnerabilities, unlike previous keystroke logger programs used by the FBI.[3][4] It has been variously described as a virus and a Trojan horse. It is not known how the program might store or communicate the recorded keystrokes.
[edit]Purpose
In response to a Freedom of Information Act request filed in 2000 by the Electronic Privacy Information Center, the FBI released a series of unclassified documents relating to Carnivore, which included the "Enhanced Carnivore Project Plan". Sullivan's confidential source said that redacted portions of that document mention "Cyber Knight",
“ a database that sorts and matches data gathered using various Carnivore-like methods from e-mail, chat rooms, instant messages, and Internet phone calls. It also matches files with captured encryption keys. ”
Spokesmen for the FBI soon confirmed the existence of a program called Magic Lantern. They denied that it had been deployed, and they declined to comment further.[5]
[edit]Antivirus Vendor Cooperation
The public disclosure of the existence of Magic Lantern sparked a debate as to whether anti-virus companies could or should detect the FBI's keystroke logger.


http://blog.misec.net/2007/07/31/3/

FBI apparently has a trojan called CIPAV which it uses to obtain information about the computers used by suspects under investigation for computer crime.

This affidavit seeks permission to install the CIPAV through MySpace, which suggests something like a browser exploit embedded in a message sent to the suspect. It is interesting to speculate whether this exploit targets Internet Explorer or Firefox (or possibly even both).
The following quote from page 16 of the affidavit leads me to believe that the FBI has several ready-made exploits, each targeted at a different browser:

It is requested that this court issue a search warrant authorizing … the use of multiple CIPAVs until one CIPAV is activated by the activating computer.

The investigators could then simply try each one in turn, until one succeeds in activating the trojan and sending information back.Several news outlets have contacted AV vendors to get clarification on whether they will detect government trojans such as CIPAV. Some have declined to comment. Needless to say, TrojanHunter will always be detecting trojans, no matter what their source.


http://www.timesonline.co.uk/tol/news/p ... 439604.ece
Police set to step up hacking of home PCs

THE Home Office has quietly adopted a new plan to allow police across Britain routinely to hack into people’s personal computers without a warrant.
The move, which follows a decision by the European Union’s council of ministers in Brussels, has angered civil liberties groups and opposition MPs. They described it as a sinister extension of the surveillance state which drives “a coach and horses” through privacy laws.
The hacking is known as “remote searching”. It allows police or MI5 officers who may be hundreds of miles away to examine covertly the hard drive of someone’s PC at his home, office or hotel room.

Under the Brussels edict, police across the EU have been given the green light to expand the implementation of a rarely used power involving warrantless intrusive surveillance of private property. The strategy will allow French, German and other EU forces to ask British officers to hack into someone’s UK computer and pass over any material gleaned.
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Postby Penguin » Sun Mar 29, 2009 5:53 am

http://newsworldwide.wordpress.com/2008 ... g-systems/

Wednesday, April 30th, 2008 @ 6:00 am | Privacy, News
Microsoft may have inadvertently disclosed a potential Microsoft backdoor for law enforcement earlier this week. To explain this all, here is the layman term of a backdoor from Wikipedia:
A backdoor in a computer system (or cryptosystem or algorithm) is a method of bypassing normal authentication, securing remote access to a computer, obtaining access to plaintext, and so on, while attempting to remain undetected. The backdoor may take the form of an installed program (e.g., Back Orifice), or could be a modification to an existing program or hardware device.
According to an article on PC World: “The software vendor is giving law enforcers access to a special tool that keeps tabs on botnets, using data compiled from the 450 million computer users who have installed the Malicious Software Removal tool that ships with Windows.”
Not a big deal until you keep reading: “Although Microsoft is reluctant to give out details on its botnet buster — the company said that even revealing its name could give cyber criminals a clue on how to thwart it”
Stop the press for second or two and look at this logically: “users who have installed the Malicious Software Removal tool” followed by “ Microsoft is reluctant to give out details on its botnet buster — the company said that even revealing its name could give cyber criminals a clue on how to thwart it”, what? This is perhaps the biggest gaffe I’ve read thus far on potential government collusion with Microsoft.
We then have the following wording: “Microsoft had not previously talked about its botnet tool, but it turns out that it was used by police in Canada to make a high-profile bust earlier this year.” So again, thinking logically at what has been said so far by Microsoft; “We have a tool called Malicious Software Removal tool…”, “we can’t tell you the name of this tool since it would undermine our snooping…”, “it’s been used by law enforcement already to make a high-profile bust earlier this year.”


http://www.networkworld.com/newsletters ... 7sec2.html

The recent debacle with the hidden key in Microsoft NT has conclusively proven a few things:
*The specter of the National Security Agency (NSA) is pretty scary to a lot of people.
Advertisement:

*Microsoft has had so many security snafus lately that people are automatically assuming the worst when it comes to announcements of a new vulnerability or backdoor.
*The mainstream media misses the point when reporting security news.
Andrew Fernandes, chief scientist for start-up Cryptonym, created waves when he claimed that the CryptoAPI within NT contained a second key that appeared to have some connection to the NSA. Nicko van Someren and Adi Shamir actually had discussed the presence of the second key as recently as last year.
What Fernandes was able to find out the key name by debugging symbolic data: _NSAKEY. He promptly published a report linking the NSA to the key based upon name alone, claiming that this key somehow was under NSA control. It is implausible that the NSA would permit a secret key to exist with such a nonsecret name, and in any case, the NSA would have more efficient ways to subvert NT. Microsoft has had a pretty consistent track record in opposing key escrow.
Although it does not appear to be a backdoor, the reaction from the NSA and Microsoft indicates that Fernandes was not completely off the mark. The likely answer is that the second key was part of Microsoft's compliance requirements for legal export. However, how do you know for sure that your software does not contain a backdoor?
Although only moderately publicized, in 1996 IBM struck a deal with the NSA to export 64-bit security within Lotus Notes. Twenty-four bits of the Notes key was given to the NSA. Having only 40 bits to crack essentially meant the NSA had the capability to decrypt Notes. This was not the kind of information that IBM went around announcing with front-page ads and neon lights. Many companies felt burned when they learned about this information. Notes users outside the U.S. had some political battles as a result of this, needing to convince their constituencies that their data was safe from the American secret police.
Whether you feel that a government's intervention in encryption matters is helpful to national security (I do not), there is no arguing the damage to software companies within. We are now at a point in the U.S. where there are rumblings that the Clinton administration will significantly liberalize encryption policy. It is unclear as to how far the administration will go at this point. But even if this does turn out to be the long-awaited moment of victory for U.S. software companies, this latest Microsoft/NSA controversy will certainly take some of the shine off of that victory. For even if official policies free up the security industry, will the NSA seek other means of ensuring their ability to compromise software? And even if they don't, will they be believed?
The real issue that comes out of this debacle is the realization that our markets, our technology and our security stand on the foundation of the fragile human psyche. It matters less whether Microsoft has a rational explanation of the second key and its relationship with the NSA. What matters is the confidence businesses and consumers can have in their software and the assurances they can have that no backdoors are embedded within. The power of social engineering became very apparent in this year's Melissa and ExploreZip viruses. We will all suffer if paranoia over backdoors runs rampant.
What is the answer to the problem? One could rationally argue that Microsoft is a victim here - that they were accused of secretly building a backdoor into their software by a single key name. However, this industry does not play by the rule of innocent until proven guilty. In dealing with secret agencies and closely held intellectual properties, reputations can be ruined by rumor and innuendo. Will IT managers inside and outside the U.S. be able to trust U.S. software?
One possibility to ensure trust outside of government regulations would appeal to me: Open Source software. They say seeing is believing, and even if companies limited their disclosure to key cryptographic modules, it would be better than nothing at all. Another possibility is the development of software that can snoop embedded keys and digital certificates - in effect auditing closed source software for keys and signed components. The original research by van Someren and Shamir showed that the randomness of data associated with keys actually makes it relatively easy to spot them. This approach is not perfect, nor are all backdoors associated with encryption.
The issue of trust in the integrity of commercial software to be free of government tampering has proven to be a significant issue. As software is developed in more corners of the globe, and governments seek to cope with the perceived threats of an online world, consumers will need more assurances of the purity of their software. The software industry needs to step forward and solve this problem, even if it feels that it is pandering to paranoia.


http://www.schneier.com/blog/archives/2 ... bg_ad.html

Dual_EC_DRBG Added to Windows Vista
Microsoft has added the random-number generator Dual_EC-DRBG to Windows Vista, as part of SP1. Yes, this is the same RNG that could have an NSA backdoor. http://www.schneier.com/essay-198.html
It's not enabled by default, and my advice is to never enable it. Ever.
EDITED TO ADD (12/18): I should make this clear that the algorithm is available as a program call. It is not something that the user can enable or disable.

http://sillydog.org/mshidden.php
"The really hidden browsing history of IE"

http://news.bbc.co.uk/2/hi/science/nature/437967.stm
Cryptographers are sounding the alarm on a major security issue involving Microsoft Windows that could eclipse its Hotmail public relations disaster.

The BBC's Kathy Riddell: "This has set alarms bells ringing"
The findings of a computer security expert that America's National Security Agency (NSA) may have been given a back door into every copy of Windows 95, 98, NT4 and 2000 worldwide are being debated across the Internet.
Microsoft has issued a strong denial of allegations of misuse of a second encryption "key" in Windows.
"These are just used to ensure that we're compliant with US export regulations," said Scott Culp, Microsoft's security manager for its Windows NT Server software.

(Ah, the regulations!)

http://www.angelfire.com/space/netcensus/backdoors.html

http://www.dabcc.com/article.as
The National Security Agency (NSA) stepped in to help Microsoft develop a configuration of its next-generation operating system that would meet U.S. Department of Defense (DoD) requirements, said NSA spokesman Ken White.

This is not the first time the secretive agency has been brought in to consult private industry on operating system security, White said, but it is the first time the NSA has worked with a vendor prior to the release of an operating system.

By getting involved early in the process, the NSA helped Microsoft ensure that it was delivering a product that was both secure and compatible with existing government software, he said.
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Postby Penguin » Sun Mar 29, 2009 6:24 am

Heres couple more links about the subject:

http://www.cl.cam.ac.uk/techreports/UCAM-CL-TR-746.html

The snooping dragon: social-malware surveillance of the Tibetan movement

Shishir Nagaraja, Ross Anderson

March 2009, 12 pages


Abstract

In this note we document a case of malware-based electronic surveillance of a political organisation by the agents of a nation state. While malware attacks are not new, two aspects of this case make it worth serious study. First, it was a targeted surveillance attack designed to collect actionable intelligence for use by the police and security services of a repressive state, with potentially fatal consequences for those exposed. Second, the modus operandi combined social phishing with high-grade malware. This combination of well-written malware with well-designed email lures, which we call social malware, is devastatingly effective. Few organisations outside the defence and intelligence sector could withstand such an attack, and although this particular case involved the agents of a major power, the attack could in fact have been mounted by a capable motivated individual. This report is therefore of importance not just to companies who may attract the attention of government agencies, but to all organisations. As social-malware attacks spread, they are bound to target people such as accounts-payable and payroll staff who use computers to make payments. Prevention will be hard. The traditional defence against social malware in government agencies involves expensive and intrusive measures that range from mandatory access controls to tiresome operational security procedures. These will not be sustainable in the economy as a whole. Evolving practical low-cost defences against social-malware attacks will be a real challenge.
Full text
PDF (0.3 MB) http://www.cl.cam.ac.uk/techreports/UCAM-CL-TR-746.pdf

http://www.infowar-monitor.net/modules. ... =0&thold=0
(This link very slow seems its experiencing difficulty handling the traffic oresently)

http://it.slashdot.org/article.pl?sid=09/03/28/190251
Slashdot story on this
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Postby jingofever » Sun Mar 29, 2009 2:32 pm

Penguin wrote:Are you serious? Theyre just in the game...Botnet is just as good as co-operation of antivirus vendors and operating system peddlers.

I was referring to the ISPs. You can always clean an infected computer but if they have the ISPs you're screwed. It's how we do it in the States, you know.
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Postby Penguin » Sun Mar 29, 2009 10:39 pm

Not really, it seems that in the States you do all of the above ;)
Plant trojans on suspects computers, log and store everything on the ISP end, and on top of that, track cellphones 24/7 too.
Magic lantern, Echelon, NSA phone spying and probably synthetic environment simulations combining all of the above and more (financial data, mail youve received and sent, etc..) And sometimes, if the suspect isnt online but uses a computer, it may be necessary to plant the keylogger locally. US cops and EU ones in many countries have the right to do this as well.

But yea, when they got the total co-operation of the ISP, youre screwed.
But if not - then you need other ways. Parts of Tibet have Internet coverage due to volunteer built radio mesh networks (GNU Radio software base). Perhaps a satlink. That would mean no Chinese man in the middle, hence trojans might be a better option. And like the story said, comps in over 100 countries. I dont think USG has my local ISPs server room keys either just yet. And the local cops, theyre just clueless with tech :P

Thou now that the new spy law here passed, its legal for many admins to spy on their users to "catch leaks" than ever before. Lessee...

Sorry if Im making little sense. I just had the worst migraine, spent the evening puking up, now its early morning and my head is still throbbing a little. Bloody lovely.
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Timing.

Postby Hugh Manatee Wins » Sun Mar 29, 2009 11:26 pm

Interesting timing for all eyes on China, March 28.

http://epic.org/
Electronic Privacy Information Center
.....
Tell Facebook to Protect User Privacy!
Facebook Principles
Facebook Statement of Rights and Responsibilities
(comments due by March 29, 2009)
.....
European Parliament Adopts Report on Fundamental Freedoms and the Internet

The European Parliament adopted with 481 votes a report on Security and Fundamental Freedoms on the Internet. Expressing strong support for privacy, data protection, securty and freedom of speech, the report called on Member States to make use of existing law, exchange best practices and draw up a series of regulations to protect privacy. The Parliament also urged Member States to update legislation to protect children using the Internet and called on the Council and Commission to develop a comprehensive strategy to combat cybercrime, identity theft and fraud. A draft of the report was released in January. See also EPIC's report on Privacy & Human Rights 2006. (Mar. 26).

Federal Trade Commission to Review EPIC Cloud Computing Complaint
The Federal Trade Commission will review EPIC's March 17, 2009 complaint, which describes Google's unfair and deceptive business practices concerning the firm's Cloud Computing Services. EPIC's complaint describes numerous data breaches involving user-generated information stored by Google, including the recently reported breach of Google Docs. EPIC's complaint "raises a number of concerns about the privacy and security of information collected from consumers online," federal regulators said. EPIC urged the Commission to take "such measures as are necessary" to ensure the safety and security of information submitted to Google. Previous EPIC complaints have led the Commission to order Microsoft to revise the security standards for Passport and to require Choicepoint to change its business practices and pay $15 m in fines. For more information, see EPIC's complaint to the FTC. EPIC's Cloud Computing Page (Mar. 19)
CIA runs mainstream media since WWII:
news rooms, movies/TV, publishing
...
Disney is CIA for kidz!
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Postby psynapz » Mon Mar 30, 2009 11:53 am

Hugh, did you notice the NYT article is penned by John Markoff?

From http://rigorousintuition.blogspot.com/2006/02/markovian-parallax-denigrate_18.html:

Jeff wrote:On August 5, 1996, Usenet groups were spammed by messages of seemingly random word strings, "sometimes numbering in the thousands in a single posting," under the subject line "Markovian Parallax Denigrate":

[...snipped example...]

Google has archived an example here that was posted to alt.religion.christian.boston-church. The sender is identified as "Chris Brokerage," though clicking "view profile" brings up the email address susan_lindauer@worf.uwsp.edu.


Anonymous blog commenter wrote:Definitions:

MARKOVIAN
: of, relating to, or resembling a Markov process or Markov chain especially by having probabilities defined in terms of transition from the possible existing states to other states


PARALLAX
: the apparent displacement or the difference in apparent direction of an object as seen from two different points not on a straight line with the object; especially : the angular difference in direction of a celestial body as measured from two points on the earth's orbit


DENIGRATE
1 : to cast aspersions on : DEFAME
2 : to deny the importance or validity of : BELITTLE

Hmmmmm. Veddy interesting.


Markoff / Markov... it's so subtle as to be doubtful which, paradoxically, makes it kinda suspect.

:shrug:
“blunting the idealism of youth is a national security project” - Hugh Manatee Wins
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Postby American Dream » Tue Apr 14, 2009 8:59 pm

www.atimes.com/atimes/China/KD08Ad01.html

Cyber-skirmish at the top of the world
By Peter Lee



For the past decade or more, China has been engaged in a game of whack-a-mole to control the burgeoning channels of digital communication between Tibetan dissidents inside Tibet and in the Tibetan diaspora. Despite Beijing's resolve to define the Tibetan issue as a solely internal matter for the People's Republic of China, Tibetan Internet issues have been quietly internationalized, thanks to the efforts of Western activists to provide cyber-security services for Tibetan dissidents and emigres.

In March 2008, Canadian investigators achieved a cyber-security triumph: the exposure of a malicious data-gathering botnet, a large number of compromised computers used to create and send spam or viruses, targeting the Tibetan international community. The botnet's exposure could almost - but not quite - be construed as a counter-intelligence operation against a hacker network apparently operating out of China.

Domestically, China routinely monitors and blocks websites, chat rooms and plain-text e-mail nationwide on a host of sensitive subjects, including Tibet, using thousands of real and virtual cybercops and its US$700 million Golden Shield infrastructure - derisively called "The Great Firewall of China" (GFW). It also employs the technical assistance of local service providers (including the in-China operations of multi-nationals like Yahoo!) to gather information on domestic dissidents.

Efforts in the sensitive Tibetan regions of China are more direct and draconian, especially in the context of heightened tensions following the unrest in March 2008.

Landline, cell and Internet services in Tibetan areas were interrupted during the period of unrest. When the Chinese government became aware that Tibetan dissidents were using the video-sharing website YouTube as a text-free method to communicate, it shut it down. When image-sharing website Flickr emerged as a potential source of visual information, it was blocked. Tibetan radio broadcasts by Voice of America (VOA), Radio Free Asia (RFA) and Voice of Tibet were jammed. A campaign against satellite dishes was intensified to limit the audience of VOA's direct-to-dish Tibet TV service. In order to cut off cell-phone based talk, text, and images, China reportedly limited service and tore down cell phone towers.

When confronting in cyberspace supporters of Tibetan dissidents located outside of China, the Chinese government is apparently abetted by a group of hackers, acting either pro bono or with government encouragement. The hackers disrupt websites, harass activists and, it transpires, organize extensive espionage operations against targeted computers around the world.

China's efforts against the Tibetan independence movement and Tibetan government-in-exile have been countered by a variety of overseas "hacktivists" - computer hackers with an activist bent. Some of these derive a measure of support, including some financial backing, from Western governments.

The hacktivist organization with the highest profile and level of capability and professionalism is probably Citizen Lab, run by Professor Ron Deibert in the University of Toronto's Munk Center for International Studies.

Citizen Lab was in the news recently when it midwived a report [1] by Information Warfare Monitor announcing the existence of a cyberspying operation targeting computers belonging to the Tibetan government-in-exile, Tibetan non-governmental organizations (NGOs), and a host of other governments and organizations around the world.

In 2008, at the request of the Office of the Dalai Lama, Citizen Lab checked the computers of the Tibetan government in exile offices in Dharmsala in India and in various European cities to determine if they were infected with malware.

Citizen Lab investigator Greg Walton collected reams of suspicious code. By plugging a likely bit into Google, he was able to locate the server that the malware was communicating with. He lured the server into establishing communication with a "honeypot" - a computer set up to document and trace cyber-intrusions - and finally penetrated it.

Walton discovered three other servers supporting the malware, and obtained a list of almost 1,300 computers - many located in the offices of emigre Tibetan government and NGOs around the world, but also in numerous Taiwanese, European and Asian governmental offices - from which they were collecting information.
The operation, which the investigators named "GhostNet", used a Trojan hidden in e-mail attachments to compromise a computer's security and download a piece of malware called gh0st RAT (RAT standing for Remote Access Tool). Gh0st RAT allowed a remote operator both to examine files on the computer and to upload them to a gh0st RAT server. Keystrokes could also be logged - a key hacking tool for acquiring passwords - and, purportedly, the computer's microphones and webcam could be activated and the audio and video sent to the gh0st RAT server.

This was not Citizen Lab's first foray into the world of China-related cyber-security. In fact, Citizen Lab finds itself at the center of many issues pertaining to China, Tibet and the Internet.

In October 2008, Citizen Lab issued a report revealing that TOM-Skype, a joint venture by Skype and an arm of Hong Kong tycoon Li Ka-shing's empire offering encrypted voice and text messaging services inside of China, saved copies of text messages on a network of eight servers.

This was a big deal for three reasons.

First, though TOM-Skype admitted that Chinese-mandated filtering software would knock out messages with forbidden keywords, it had previously claimed that the filtered messages were discarded. Not true. The filtered messages were stored on the eight servers.

Secondly, TOM-Skype is supposed to be a private, encrypted service with encryption keys that were the secret property of the service's users. Nevertheless, it was revealed that, presumably at the behest of the Chinese government, TOM-Skype saved both the traffic and the keys needed to decrypt it.

Third, the servers were also apparently storing traffic that did not contain banned keywords - an indication that the Chinese government was selecting individuals and accounts to monitor, and dumping all their traffic on the servers for examination.

The TOM-Skype affair highlights the central role played in the battle between the Chinese state and those who wish to navigate the Internet beyond its control by a unique technical feature of Internet communication: 128-bit encryption.

In the 1990s, Phil Zimmerman, an American political activist, developed an unbreakable open source 128-bit encryption program employing private and public keys that he called, tongue-in-cheek, "Pretty Good Privacy" or PGP. The US government, realizing that propagation of PGP would put an end to the era in which the National Security Agency (NSA) possessed the technical means to monitor every form of electronic communication from telegrams and faxes to computer traffic, bitterly fought Zimmerman's efforts to publicize the code.

The government placed 128-bit encryption on a list of munitions proscribed for export. Zimmerman countered by printing the PGP source code in book form and claimed his right to protection under the First Amendment of the US constitution. In 1996, realizing that mathematicians and programmers overseas were capable of developing equivalent programs, the US government dropped its investigation of Zimmerman and permitted the export of PGP.

Probably, if the Federal Bureau of Investigation and NSA had succeeded in their efforts to keep the 128-bit genie in the bottle until September 11, 2001, changing the security vs freedom equation, we would be living in a world where every government demanded a copy of everybody's encryption key.

As it is, today the open, distributed international architecture of the Internet demands encryption in order to protect both the sensitive data that travels along it and the network itself. All efforts to impose - and evade - monitoring and control of digital information take place in the shadow of 128-bit encryption.

Governments around the world, "free" as well as totalitarian, have responded with a variety of strategies to ensure that encrypted communications yield up their secrets.

Rights of privacy are extremely limited, if not non-existent, when it comes to encryption. Companies and individuals are expected to produce keys at government demand in response to informal requests, pointed demands, subpoenas, or something called "rubber hose cryptoanalysis", a euphemism for the extraction of cryptographic secrets (eg the password to an encrypted file) from a person by coercion.

Governments, especially the United States, are rumored to routinely seed computers, software and even mathematical elements of the decryption algorithm itself with backdoors that enable the surreptitious acquisition of passwords and the precious keys.

Commercial providers of encrypted e-mail worldwide are apparently eager to cooperate with the government and avoid being identified as a provider of genuinely secure communications to terrorists, criminals and any other suspect entity.

In the course of a criminal investigation of steroid smuggling, one provider, Hushmail, revealed [2] that it was able to turn over decrypted traffic to the Canadian government because it had a Java applet that could penetrate its customers' computers to extract the supposedly sacrosanct private key.

And if a key really can't be provided, but plain and encrypted versions of the same message are available and can be attacked with adequate time, skill and resources, the underlying code may be broken.

China has made the somewhat counterintuitive but perhaps inevitable decision to join the family of nations that tolerates but controls encrypted communication - and engages in the never-ending, no-holds-barred struggle to track and crack it.

China, after all, is anxious to reap the economic rewards of being at the forefront of the digital networking revolution. Since China is already near the forefront of the hacking, cracking, phishing (the use of a fake websites or e-mails to obtain to gather confidential data), and cybercrime revolution, it must also accept the need of businesses and individuals to encrypt sensitive data.

China, like governments around the world, insists that businesses offering encrypted communications within their borders provide the means to generate decrypted traffic at the demand of law enforcement.

As the TOM-Skype case shows, any commercial participant in encrypted communication activities will be expected to provide a backdoor and/or a helping hand to Chinese security organizations.

The attention of dissidents - and the security personnel who track them - must turn elsewhere for more private communications.

Secure, non-commercial e-mail encryption is still available to those who have the ability and desire to forego the commercial services and are willing and able to engage in the rather laborious process of maintaining their own collection of encryption keys and coding and decoding their traffic without relying on the web-based public key servers.

However, encryption does not encode the e-mail header, which exposes information on the sender and receiver, thereby providing security forces with a point of entry to generate a social-web map of senders and recipients that is, in itself, a source of dangerous intelligence. Furthermore, the very act of sending and receiving encrypted e-mail possibly attracts unwelcome scrutiny, both in China and around the world,

Beyond e-mail encryption, there are other options for those inside China desiring untrammeled access to the global Internet. They involve exploiting https - the encrypted hypertext transfer protocol designed for secure financial transactions - to establish contact with computers outside China that can be used as proxies.

Detailed online manuals provide instructions to Tibetan dissidents, Falungong adherents, and anybody else hoping to evade the prying eyes of the Chinese security forces and safely surf the web, communicate or blog internationally.

The most widely-used facilities are Dynaweb, Garden and Ultra Surf. These services coordinate their offerings through the Global Internet Freedom Consortium (GIFC), a group that receives some US government funding and is apparently run by friends of Falungong, the outlawed and extremely tech-savvy Chinese religious group-cum-political movement.

The three services gleefully run a never-ending Spy vs Spy war with the Chinese cybercops, continually flooding the zone with new Internet Protocol (IP) addresses - a computer's identification number on a network - that their users (and the Chinese security organizations that inevitably participate in the service) link to with a "tunnel discovery agent" in order to connect to proxy servers - a computer system or application program that acts as a go-between - before the Chinese government shuts them down.

They count VOA and RFA as their clients and proudly state that the service has never been interrupted.

But, in the case of gh0st RAT, maybe score this round to China. In its own analysis of the computer security travails of the Tibetan emigre community, "Snooping Dragon", the University of Cambridge reported [3] that the China hackers availed themselves of Dynaweb's facilities:

However, after a while, we saw a number of accesses through Dynaweb - a set of anonymization proxy servers associated with the Falungong religious movement, which is also detested by the government of China.

We are at a loss how to explain this. Perhaps the Chinese detected the start of our clean-up operation and decided to hint that they had compromised Dynaweb - whether to deter people from using it, or to deter the US government from funding it? We just have no idea.


As a public service that aggressively markets its product in a strategy to overwhelm China's security apparatus, the GIFC's partners are vulnerable in turn to the most diabolical weapon in China's arsenal - porn.

Porn is the bugbear of censorship circumvention service providers.
Ironically, it has pushed the service providers themselves to assume the role of censors. In a white paper [4] entitled Defeat Internet Censorship, The GIFC interrupted its triumphalist recitation of its omnipotent software capabilities to note:

With limited resource and bandwidth, an anti-censorship system with unrestricted access will soon be consumed by pornography, gambling and drug-related information and become useless to users in the most-needed regions. Therefore, it is critical and beneficial for an anti-censorship system to have some built-in mechanisms to control content access. At least, it should have the ability to block some high-profile pornography portals in order to save the bandwidth for better uses. It should also provide tools for law enforcing authorities in the free world to monitor the information flow when needed to avoid the encryption channels being exploited for terrorist communications.

In a demonstration that irony is, if not dead, on hiatus at GIFC, the writers of the white paper also proposed that, once China's surfers emerge from the Great Firewall rabbit hole, they be directed toward more wholesome browsing courtesy of GIFC in its role as portal manager and content provider:

To better protect and serve users who have overcome the blocking and reached the other side of [the] GFW, it is highly beneficial to provide them with an uncensored, trustworthy portal site in their own native languages, which provides services such as search engines, directories, bulletin boards, e-mails and chat rooms. These services are better protected when they are tightly integrated with the anti-censorship tools they use.

More importantly, such a portal site can shield users from those overseas websites set up by the Chinese regime or communist regime-backed entities. Their websites serve as a trap to collect users' information as well as serve their exported propaganda machinery.
But legitimate porn-surfing by frustrated citizens, dedicated freedom activists and fanatical cultists to whom GIFC caters is probably just the tip of the iceberg.

Beneath the high-minded concern for the morals, safety and education of Chinese web surfers is perhaps the concern that the service could not survive a concerted attack by malicious Chinese government users logging on simultaneously to download a lifetime's supply of porn and bootlegged Jackie Chan movies - and the GIFC might need a Great Firewall of its own to protect itself.

An alternative to a high-profile, high-intensity professional circumvention service under continual attack by the Chinese government is an "anonymizer" program called TOR (The Onion Router).

TOR performs a multiple-layer encryption of requests for web pages and relies on a network of computers supplied by volunteers to strip the address layers (like an onion) until the last server - the TOR exit node - connects to the destination using its own IP address. Each computer only knows the previous link; if the message is intercepted, it cannot be traced back to the originator.

Traffic analysis can reportedly compromise the anonymity of the TOR network, but its true vulnerability is highlighted by a post from the UK entitled "Why You Need Balls of Steel to Operate a TOR Exit Node" [5]:

[After providing service as a TOR exit node for about one year] I was visited by the police in November 2008 because my IP address had turned up in the server logs of a site offering, or perhaps trading in (I was not told the details of the offence) indecent images of children … It was what is known as a "dawn raid" and, amazingly enough, my children were still asleep when it occurred. Thank God … I was overwhelmed by horror to be implicated in such a thing. I was desperately worried about my family. One of the officers had told my wife that Social Services would be informed as a matter of course and there was a possibility that my children would be taken into care

After an agonizing four-month investigation, the police dropped the case. But the writer concludes: "I think, in retrospect, I was desperately naive to run a TOR exit server on a home computer."

So, it doesn't take much to degrade the TOR system. Just a collection of malicious hackers going on the system masquerading as legitimate users, hogging bandwidth, downloading child porn, or visiting sites flagged by the police as terrorist/criminal-related. If a genuine cyberwar erupts, one would expect that the TOR network will grind to a halt in a matter of minutes.

The latest iteration in the struggle between the Chinese government and dissidents over Internet communication is brought to us by none other than Citizen Lab.

In 2007, Citizen Lab developed and spun off a "censorship circumvention software" it called Psiphon, which establishes an encrypted link from inside a country that limits Internet browsing to a computer in another country that allows free browsing.

Citizen Lab's Ron Deibert undoubtedly did not endear himself to the Chinese government by publicizing the Psiphon service in the aftermath of the unrest in Tibet last year as a way for activists inside China to get the word out to the West. Psiphon also advertised its commercial service to foreigners as a safeguard against Chinese cybersnooping during the 2008 Beijing Summer Olympic Games; apparently the BBC and the US State Department signed up for the service as a way to secure their communications from Beijing.

Psiphon uses the "small is beautiful" strategy, but avoids the problems of TOR by eschewing the "anonymizer" route. Instead, the network's integrity is protected because the owners of the computers in the free-browsing countries - called "psiphonodes" in the company jargon - only invite users of the service, "psiphonsites", that they personally know and trust.

The owners provide a distinct URL or web address (generated by Psiphon) pointing to their computer, and a unique password for each user, that enables the user to connect to the page using the https protocol; once logged in the owner's computer, the user can surf to his or her heart's content.

Well over 150,000 owners have signed up to become Psiphonodes. It is unclear how many users link to these nodes.

User traffic can be monitored by the psiphonodes and apparently some of the operators have been knocked out of their Birkenstocks by the insatiable demand for porn of some of their trusted users - and the legal risk that serving as the connecting node to the offending site exposes them.

Psiphon, as a diffuse set of mini-networks each closely controlled by its own node, is proof against a massive, malicious use attack that threatens the GIFC and TOR services.

Its vulnerability seems to exist not in the world of cyberspace, but in the realm of the system's human users and operators.

A Psiphon system can apparently be compromised if the node or site computer is penetrated through operator carelessness in response to something called "social engineering": the deployment of phishing e-mail that exploits the human target's natural curiosity and desire to engage and communicate, and enables the installation of malware - like the gh0st RAT program that bedeviled the Tibetan government in exile.

For the record, Citizen Lab denied that its investigation of gh0st RAT was related to any vulnerabilities in Psiphon and did not confirm that any of the targeted computers were running as Psiphon nodes serving inside China.

Indeed, the penetration of computers in Dharmsala - one monk reported watching Outlook Express open by itself and send an e-mail off with a document attached - was a pressing issue in itself, and enough to justify the extensive investigation.

However, what happened to the Tibetan computers brings to mind weaknesses that might be exploited at Psiphon node or site on a PC platform: non-professional operators with an uncertain grasp of security working on vulnerable machines, unwittingly downloading malware that enables remote observers to read files, keylog passwords and extract keys.

On a psiphonsite, malware could extract details of the log-in and disable and/or imperil its psiphonode by logging in for a malicious, bandwidth-hogging session. If a psiphonode is identified and penetrated, apparently details of the psiphonsite(s) it is serving - and the pages they have visited - can be extracted.

Balancing Psiphon's reliance on a "network of trust" versus the willingness of the Chinese government (or their bespoke hackers) to pour resources in the cyber struggle with the Tibetan emigre movement, this skirmish in cyberspace might turn out to be a draw.

Interestingly, Citizen Lab seems to be interested in dialing down the rhetoric in the wake of its cybersecurity coup against "GhostNet".

Despite a preponderance of circumstantial evidence - such as the nature of the targets and the existence of three out of four of the gh0st RAT control servers inside China - its report went out of its way to caveat assumptions of Chinese government involvement in the attack and stress that Citizen Lab researchers had not broken any laws in the investigation.

Certainly, Citizen Lab did not wish to find itself - or the Canadian government - characterized as a provider of counter-intelligence services to the Tibetan government in exile in its battle with incessant Chinese cyber-intrusions.

Citizen Lab's restraint may have also reflected Professor Deibert's publicized dismay at the West's growing interest in militarizing the Internet - illustrated by a bipartisan proposal that the Barack Obama administration appoint a "Cybersecurity National Adviser" with the power to disconnect the government and "critical" civilian networks from the Internet in case of national emergency - largely in response to China's perceived intentions and capabilities in cyberwarfare.

On a more strategic level, Deibert's caution may also reflect an awareness that the censorship-circumvention infrastructure may be adequate for low-level skirmishing with malicious Chinese hacker-patriots and the drudges running day-to-day Internet interdiction for China, but perhaps would not be able to withstand a concerted assault by China's cyberwarfare specialists - or cope with an Internet fragmented into Chinese and Western cybersecurity fortresses.

The Internet seems destined to frustrate both hopes of China for national security, and those of dissidents for an irresistible truth weapon.

One of the most famous observations concerning the Internet is by John Gilmore, founder of the Electronic Freedom Foundation: "The Internet treats censorship as a defect and routes around it."

Perhaps the Internet has the same response to censorship's doppelgangers - secrecy, encryption and the user's desire for privacy: it rejects them and finds a way around.

Those bits and bytes just want to be free. And we have to find a way to live with that.

Notes
1. See Tracking GhostNet: Investigating a Cyber Espionage Network
2. See Hushmail warns users over law enforcement backdoor.
3. For the report, click here.
4. See Defeat Internet Censorship: Overview of Advanced Technologies and Products
5. See Why you need balls of steel to operate a Tor exit node

Peter Lee writes on East and South Asian affairs and their intersection with US foreign policy.
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Postby Penguin » Wed Apr 15, 2009 3:34 am

http://yro.slashdot.org/article.pl?sid=09/04/14/2234253

"'Proxy servers are an everyday part of Internet surfing. But using one in a crime could soon lead to more time in the clink,' reports the Associated Press. The new federal rules would make the use of proxy servers count as 'sophistication' in a crime, leading to 25% longer jail sentences. Privacy advocates complain this will disincentivize privacy and anonymity online. '[The government is telling people] ... if you take normal steps to protect your privacy, we're going to view you as a more sophisticated criminal,' writes the Center for Democracy and Technology. Others fear this may lead to 'cruel and unusual punishments' as Internet and cell phone providers often use proxies without users' knowledge to reroute Internet traffic. This may also ultimately harm corporations when employees abuse VPN's, as they too are counted as a 'proxy' in the new legislation. TOR, a common Internet anonymizer, is also targeted in the new legislation. Some analysts believe this legislation is an effort to stop leaked US Government information from reaching outside sources, such as Wikileaks. The legislation (PDF, the proposed amendment is on pages 5-15) will be voted on by the United States Sentencing Commission on April 15, and is set to take effect on November 1st. The EFF has already urged the Commission to reject the amendment."

http://hosted.ap.org/dynamic/stories/T/ ... TE=DEFAULT
http://www.torproject.org/overview.html.en
http://www.ussc.gov/2009guid/20090127_R ... dments.pdf The legislation as pdf file.
http://www.eff.org/press/archives/2009/03/17
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Postby Penguin » Wed Apr 15, 2009 3:51 am

http://www.eff.org/press/archives/2009/04/13

Computer Science Student Targeted for Criminal Investigation for Allegedly Sending Email
EFF Challenges Illegal Computer Seizure and Ongoing Data Searches by Campus Police

Boston - A Boston College computer science student has asked a Massachusetts court to quash an invalid search warrant for his dorm room that resulted in campus police illegally seizing several computers, an iPod, a cell phone, and other technology.

The Electronic Frontier Foundation (EFF) is representing the student, who has petitioned the court for the immediate return of his property and is demanding that investigators be prohibited from any further searches or analysis of his digital data. Massachusetts State Police participated in the search and are overseeing the forensic analysis of the seized property.

"This search warrant is invalid, as there is no probable cause that a crime was committed at all," said EFF Civil Liberties Director Jennifer Granick. "Every day this student's private information is in the hands of the police department, he suffers harm to his property interests and his constitutional rights."

The dorm room search stemmed from an investigation into who sent an email to a Boston College mailing list alleging that another student was gay. Police say they know who sent the email and that the sender committed the crimes of "obtaining computer services by fraud or misrepresentation" and obtaining "unauthorized access to a computer system." However, nothing presented by the investigating officer to obtain the warrant, including the allegation that the student sent the email to the mailing list, could constitute the cited criminal offenses.

Some of the supposedly suspicious activities listed in support of the search warrant application include: the student being seen with "unknown laptop computers," which he "says" he was fixing for other students; the student uses multiple names to log on to his computer; and the student uses two different operating systems, including one that is not the "regular B.C. operating system" but instead has "a black screen with white font which he uses prompt commands on."

"The police used inapplicable criminal laws as a basis for a fishing expedition to determine the author of an anonymous email," said EFF Senior Staff Attorney Matt Zimmerman. "Now, this student has been suspended from his job, and he is without a laptop and other devices he needs to do his schoolwork. His private communications and papers are in the hands of police who are searching for evidence without just cause. Even his cell phone and iPod were taken, clearly an overreach if the goal is tracking the source of an email."

The motion to quash the search warrant was filed with assistance from Fish & Richardson attorneys Adam Kessel, Lawrence Kolodney, and Tom Brown. No court date has been set yet to hear the motion.


:shock:

I dont know, pot called kettle, kettle get a restraining order or whut?
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